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Sample Research Paper on ICT Outsourcing

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Sample Research Paper on ICT Outsourcing

Introduction

Sanofi

Sanofi is a multinational pharmaceutical company that was founded in the year 1973 as a subsidiary of Elf-Aquitaine. Currently, Sanofi is the fifth largest prescription sales. The company is concerned with various activities as research and development, manufacturing and marketing of pharmaceutical drugs and currently it is the biggest producer of vaccines.

Due to the criticality of its area of operation and competition from other upcoming companies, Sanofi has decided to implement an ICT project that will see it engage its customers across the world. The ICT is aimed at easing marketing, reducing production costs, improving communications and facilitating access to the products and services that it offers to its customers. To ensure that the company gets the most qualified services of an ICT firm, the CEO has decided to outsource the services of an ICT consultant firm to assist in the implementation of the ICT project.

TASK 4.02    Report on outsourcing of ICT

Outsourcing refers to an agreement between two companies in which one company provides services to the other business. In most circumstances, such services could have been provided in-house. Most industries are now using outsourcing for services that have usually been regarded as intrinsic to managing a business (Cooper 1989).

 

 

 

Objectives of Outsourcing

The CEO might have been interested in lowering the operational and labor costs. When an external service provider is used, outsourcing has a defining impact on the company’s revenue recognition and can deliver significant savings.

The CEO might have chosen to outsource the ICT services in order to enable it to continue focusing on its core business processes while delegating the task to the external agencies.

The CEO might have outsourced external services to wash their hands off functions that are difficult to manage and control while still realizing the benefits.

The CEO might have outsourced to help the company to expand and gain access to new market areas, by taking the point of production or service delivery closer to their end user.

Pros of Outsourcing

Outsourcing ensures that labor costs are lowered, and there is increased realization of the economics of scale.

Outsourcing frees management time, enabling firms and companies to focus on core competencies while not being concerned about outsourced routine.

Outsourcing involves the use of highly qualified professionals that ensures that there is increased speed and the quality of delivery of the outsourced activities.

Outsourcing ensures that the company taps into a knowledge base better for innovation that may not be from the enterprise (Folinas 2013).

Cons of Outsourcing

  When a company outsources services, there are possible losses of control of the company’s business processes to the company contracted for the services.

There are potential problems of having a poor quality of services to be offered and also time wasted as a result of lacking control of the outsourced services.

The outsourcing company may also have problems with response to emergencies and also sluggish response coupled with slow issue resolutions.

Lack of monitoring of the services offered by the outsourcing company may lead to getting lower than expected realization of benefits and results.

Delivery models to be considered

Outsource delivery model– This is one of the best delivery models used as it is considered to save money and stays attentive to the unique business needs of the client. It is flexible and ensures high resource management. It can provide customers with blended onsite, offsite and offshore teams customized to meet each client’s project requirement.

Onsite delivery model– This entails professionals who are deployed on the customer’s compound and business. In most cases, this model is considered viable if there are needs for particular resource type or if post deployment support is imperative.

Hybrid delivery model-It involves a combination of both the offshore and onsite and is considered to be the best as it results in optimized costs and maximized efficiency. In most circumstances, the onsite team will interact with the customers and will serve as consultants, program managers, and developers, depending on the project requirement.

Global delivery model– This provides clearly defined process guidelines emphasizing the significance of information flow and communication. The importance of this model combined with the infrastructure and quality orientation reduces engagements risk for a customer to conventional delivery models.

Aspects of ICT to be outsourced

The company will outsource the services of a firm to develop an ICT system that will be used by the business. The ICT system should be well structured and easy to manage even in the absence of the services of the outsourced company.

Acquisition of the right to control the services outsourced must also be granted to the enterprise to avoid any conflict that may arise in the future. This will also ensure that the company is protected from any legal cases that may occur.

TASK 4.03 Process flow model
Request for information

This is the first stage in the process of outsourcing. It involves the process of gathering information to aid the decision making of the next steps to make. The process includes the identification of parts and groups for which compliance data is required. The use of Data Flow Diagrams will assist in the process as information will flow from one point to the next.

 

 

 

Request for tender

It refers to a designed request to suppliers to submit a bid to supply products or services. The Role Activity Diagrams business modeling can be used to describe the desired behavior within the organization.

Evaluation, selection of supplier

The suppliers are then evaluated and selected by process and design capabilities, quality and reliability, cost, service, capacity, location, management capability, financial condition and structure and the supplier selection scorecard.

Contract negotiation, implementation

The negotiation involves the parties involved coming together to hammer out the details of the deal. The firm will agree on the modalities to which the services will be provided and the nature of evaluation to be taken. The use of Grant Charts model is significant as it will incorporate activities to a time scale.

Service management

This is mainly concerned with how the services being outsourced will be managed and the nature of the results required. It entails supervision and evaluation process and also how the conflicts that arise in the course of the business is to be managed.

TASK 4.04 Request for Information

The primary object of RFI is to collect written information about the capabilities of various suppliers. The potential suppliers are asked to supply information that is to be used for the evaluation. The information may include cost, management level, the level of technical expertise, duration of the project, nature of the business being done and the general view of the project to be undertaken. The outsourcing company will also request information that is related to process and design capabilities, quality and reliability, cost, service, capacity, location, management capability, financial condition and structure and the supplier selection scorecard.

TASK 4.05    Evaluation Methodologies

Culling refers to the criteria of separating people, organisms of objects from a group depending on the desired or undesired characteristics. To have the best firms shortlisted, the company will adopt a range of factors that all the suppliers must meet for them to be considered.

Key Performance Indicators

Quality– The supplier must be able to provide very high-quality services. It can be achieved through previous performances.

Delivery–  This KPI measures how the supplier can get what the organization needs when it needs it. The provider must show commitment and reliability.

Contract compliance–  This KPI measures how the supplier will comply with the service contract agreement, contract terms and condition and the pricing agreements (Van 2008).

Service Level Agreement

SLA is an agreement between a provider of service or product and a customer that could require inventory restocking, repairs or on-going enhancements. Some of the key SLAs to consider are;

Customer based Service Level Agreement

This is an agreement that covers all the services that an individual customer group uses, for example, an agreement for services such as purchase system, procurement systems, billing systems, payroll systems and finance systems (Rees 2015).

Web service level agreement

This kind of SLA allows authors specify the actions that should be performed when performance is not met, the desired target performances and the performance metrics associated with applications of the web service (Greer 1979).

Cloud Computing SLA

This is an SLA that involves shared resources. Reporting, monitoring, and measuring are based on the ability of the end users to consume resources of an end user (Vagadia 2012).

TASK 4.06 Report to CEO
Objectives

To identify the purpose of outsourcing in companies

To determine the advantages and disadvantages of outsourcing

To identify an outsourcing firm that can implement an ICT system for Sanofi

Background

The world has so much become competitive, and companies and enterprises are engaged in continuous improvement in their services to attract more customers. Sanofi, as one of the leading pharmaceutical companies, has resorted to migrate from the current manual operations to a digital system that will see it improve its services in finance, research, data management and customer services.

Processes undertaken

Definition of objectives that are to be achieved to ensure that the implementation of the new ICT system goes as required.

There was also the process of setting realistic expectations and ensuring that the objectives that were set were feasible and achievable within the timeframe that was set for them.

Then bids were received from interested bidders and suppliers. They were also required to share some information that could be used for selection and evaluation. This process involved evaluating the bids by process and design capabilities, quality and reliability, cost, service, capacity, location, management capability, financial condition and structure and the supplier selection scorecard (Kirk 2010).

Scope of outsourcing

The scope of the process of outsourcing was based on the premise that this was a new project that needed a lot of professionalism, expertise, and knowledge and hence there was the need of getting a qualified service provider who had the required and desired qualifications (Alhakim and Memmola 2009).

Solutions and Suppliers Evaluated

There were twenty-one bids that were received from potential suppliers. These were then assessed by process and design capabilities, quality and reliability, cost, service, capacity, location, management capability, financial condition and structure and the supplier selection scorecard. In the end, only three of them made it to the final stage. The three were later required to provide further information but on one did, Sun Technologies. It was after that Sun Technology was selected as the preferred outsourcing company.

Recommendation

Since this is a new project, careful supervision will be required to ensure that the project is achieved on the first attempt.

There is also the need to outsource the services of an experienced consultant in the ICT sector to monitor and ensure that the Sun Technologies operates in the required manner (Alhakim and Memmola 2009).

 

 

 

 

 

 

 

 

 

TASK 4.07Presentation

Sanofi

 

To,

The CEO,

Sanofi Limited,

Dear Sir,

The purpose of this report is to brief you on the assignment of outsourcing ICT service provider. After a thorough scrutiny of the bids received, Sun Technologies was selected as the most preferred firm to provide the services. We really considered its high level of expertise, professionalism and quality of service. Attached are the stages of how conclusion was made to Sun Technologies.

Thank you for the opportunity and the trust of this high task.

Best Regards,

Chairman,

ICT Department

 

 

 

 

Appendix 1
Journal

Reference number

Date of Entry

Activity Name

Activity Description

Planned Action

Status

Open/Closed

Other Notes

0001

13.06.2016

Define the objectives

These objectives will define and state the reasons for an offshore program illuminate its business value and provide a working framework for making decisions about which vendor to work with, which outsourcing model to use.

To analyze what services are needed and their feasibility.

Consult with the CEO of the nature of objectives maybe needed to be fulfilled.

open

Achieved

0002

14.06.2016

Set

Expectations

This will involve the review of the objectives to ensure that they are feasible and realistic.

Consult with other related offices to ensure that they are integrated and that they are aware of the nature of services that are to be outsourced.

Open

Achieved

0003

17.06.2016

Select an effective outsourcing model

This will involve selecting an effective outsourcing model, one that has proven to be successful, meets the company business model and fits the current circumstances.

It will involve choosing from a variety of outsourcing models each with its own strength, weaknesses and appropriate applications.

open

Achieved

0004

19.06.2016

Monitor and evaluate progress

This is where important measurements are kept on track.

It will involve the establishment baseline of current performance using scorecard metrics that are used to evaluate offshore performance. 

 

Achieved

Report to CEO

20.06.2016

Brief CEO on the selected supplier

Write report of the processes involved and the selected supplier

   

Achieved

 

 

 

 

 

Reference

AL-HAKIM, L., & MEMMOLA, M. (2009). Business web strategy: design, alignment and application. Hershey, Information Science Reference.

ASHLEY, E. (2008). Outsourcing for dummies. Hoboken, N.J., Wiley Pub.

BIR (CONFERENCE), JOHANSSON, B., ANDERSSON, B., & HOLMBERG, N. (2014). Perspectives in business informatics research: 13th International Conference, BIR 2014, Lund, Sweden, September 22-24, 2014. 

COOPER, J. E. (1989). Journal keeping by administrators: exploring one example of reflection as a means to successful professional practice.

FOLINAS, D. (2013). Outsourcing management for supply chain operations and logistics services. Hershey, PA, Business Science Reference.

GREER, R. C. (1979). Reasons for culling beef cows and estimates of the proportion culled for each reason. Bozeman, Mont, Montana Agricultural Experiment Station, Montana State University.

INTERNATIONAL CONFERENCE ON LOGISTICS, INFORMATICS AND SERVICE SCIENCE, ZHANG, Z., SHEN, Z.-J. M., ZHANG, J., & ZHANG, R. (2015). LISS 2014: proceedings of 4th International Conference on Logistics, Informatics and Service Science.

IRELAND, R. D., HOSKISSON, R. E., & HITT, M. A. (2007). Understanding business strategy: concpts and cases. [Mason, OH], Thomson South-Western.

KIRK, S. A. (2010). IT outsourcing: concepts, methodologies, tools, and applications. Hershey, PA, Business Science Reference.

REES, M. (2015). Business risk and simulation modelling in practice: using Excel, VBA and @RISK.

VAGADIA, B. (2012). Strategic outsourcing the alchemy to business transformation in a globally converged world. Heidelberg, Springer.

VAN SLYKE, C. (2008). Information communication technologies: concepts, methodologies, tools, and applications. Hershey, Pa, Information Science Reference

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